COVID-19 Triggers Wave of Department Store Bankruptcies in US... Amazon 'Smiles'

Neiman Marcus, JC Penney Bankruptcy Imminent
Amazon Stock Hits All-Time High

[Asia Economy New York=Correspondent Baek Jong-min] Leading department stores in the United States are expected to enter bankruptcy proceedings one after another. Amid the rise of the online retail market led by Amazon, these stores had barely been surviving, but the novel coronavirus disease (COVID-19) dealt a decisive blow.

In contrast, Amazon is experiencing a boom, hiring a large number of employees due to surging orders during the COVID-19 crisis and recording an all-time high stock price.

[Image source=Reuters Yonhap News]

CNBC reported on the 24th (local time) that Neiman Marcus, a luxury department store with a 113-year history, is expected to file for bankruptcy protection as early as the 26th.

Neiman Marcus is expected to be recorded as the first major department store to collapse due to the COVID-19 crisis. Neiman Marcus's debt exceeds $4 billion, and debts exceeding $100 million are due by the end of this month. Most of its stores are closed due to the COVID-19 crisis, and most of its approximately 14,000 employees are on unpaid leave.

The famous department store JC Penney is also close to filing for bankruptcy. The store failed to pay $12 million in interest and negotiated with creditors to extend debt repayment but failed to reach a conclusion, and is discussing bankruptcy financing of up to $1 billion. The Wall Street Journal reported that bankruptcy protection is expected to be filed within a few weeks.

[Image source=Reuters Yonhap News]

Macy's, the largest department store chain in the United States with a 162-year history, is also reported to have recently met with investment banks to discuss funding plans.

On the other hand, the online shopping giant Amazon is rapidly advancing. Amazon's stock price closed at $2,410.22, up 0.5% that day, continuing its all-time high streak. Amazon's stock price has been rising daily since hitting a low of $1,900 earlier this month.

This content was produced with the assistance of AI translation services.